SunSirs: Rubber and Plastics Industries Bulk Commodity Intelligence (September 5, 2025)

Macroeconomics

1. [Anti-Circumvention Investigation] The Ministry of Commerce announced the ruling in China's first anti-circumvention investigation, determining that US exporters circumvented China's anti-dumping measures on US non-dispersion-shifted single-mode optical fiber products by exporting relevant cut-off wavelength-shifted single-mode optical fiber to China. The Ministry of Commerce decided to implement anti-circumvention measures starting September 4th. The Ministry of Commerce stated that this case is China's first anti-circumvention investigation and has groundbreaking significance in enriching China's trade remedy investigation tools.

2. [US-Japan Trade Agreement] The White House announced that Trump signed an executive order formally implementing the US-Japan Trade Agreement. The order will reportedly clarify tariff adjustments to ensure that Japanese imports previously subject to higher tariffs will not be subject to double taxation, while goods previously subject to tariffs below 15% will be adjusted to the new rates. Furthermore, the White House stated that Japan is committed to accelerating its plan to increase US rice purchases by 75%.

3. [US ADP Employment] US ADP employment increased by 54,000 in August, significantly below market expectations of 68,000 and a significant slowdown from the revised 104,000 increase in July.

4. [Indian Taxation] Indian Finance Minister Sitharaman announced tax cuts on hundreds of consumer goods, from soap to small cars, to stimulate domestic demand and offset the economic headwinds from US tariffs. The Indian Goods and Services Tax (GST) panel approved lowering tax rates on a range of everyday items, streamlining them to 5% and 18%. The tax cuts will take effect on September 22.

Rubber and Plastics

1. [PE] On September 4th, Shandong Wanhua Chemical shut down its 450,000-ton full-density production unit, with an expected restart in early October. Its 350,000-ton HDPE unit produced 5731K, and its 250,000-ton LDPE unit switched to 2420H. LLDPE 7042 in East China was quoted at 7,500 RMB/ton, down 50 RMB/ton; LLDPE 7047 was quoted at 7,550 RMB/ton, temporarily stable; and LDPE 2420H (price including pallet) was quoted at 9,665 RMB/ton, temporarily stable.

2. [PP] On September 4th, Daqing Petrochemical's 100,000-ton/year PP unit operated normally. The ex-factory reference price for T30S wire drawing was lowered by 50 RMB to 6,960 RMB/ton. Spot prices were market-driven, and trading was acceptable.

3. [Butadiene Rubber] On September 4th, merchants in the Northwest region saw a slight decrease of 50 RMB/ton in the butadiene rubber market. At present, the mainstream price of butadiene rubber in Sichuan, Dushanzi, Lande and other places is 11,850 to 11,900 RMB per ton.

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